Bitcoin near $66K as traders await Alphabet earnings on AI spending
In brief
- Bitcoin near $65,900, up 1.5% weekly, awaiting Alphabet earnings results
- Chip stock rebound stalled amid uncertainty over AI investment returns
- Bitcoin tracking semiconductor complex all month on AI sentiment shifts
AI spending scrutiny weighs on crypto and chips
Bitcoin has moved with the AI trade all month, rising when the chip complex is strong and falling when it wobbles. The same risk appetite drives both markets. Beyond sentiment, the connection runs deeper: bitcoin miners have rebuilt into AI data-center operators, tying their fortunes directly to the infrastructure race.
Alphabet said last quarter it would more than double capital spending to as much as $190 billion this year. That scale of commitment has spooked some investors. Chipmakers have been whipsawed by fears the pace of AI investment cannot hold. Alphabet's earnings will be the market's first hard look at whether the build-out is delivering.
Market positioning ahead of earnings
Ether held near $1,917, up 2% on the week, while broader tech showed weakness. Nasdaq 100 futures fell 0.8% and South Korea's Kospi trimmed strong early gains, with tech lagging in Europe.
The timing matters. The Federal Reserve meets July 28 and 29, six days after Alphabet's earnings report. If Alphabet signals AI returns are materializing, it could ease fears of a spending bubble and unlock appetite for risk assets. If guidance disappoints, crypto and semiconductors could face sustained pressure into the Fed decision.
